How Customer Loyalty Solutions are Taking Over the Banking Industry
The financial services are becoming more competitive than ever before. Traditional banks who win digitalization get a huge advantage in the marketplace. They create propositions and experiences that attract and retain loyal customers.
Most of the banks have already immersed themselves in loyalty programs for customers in an attempt to increase customer engagement and retention rates. In a highly competitive banking environment where customers can easily slipway, the right loyalty solution can help you in strengthening your bond with your customers.
Customers want to feel recognized. Simply, by offering points or exclusive deals generate true customer loyalty. The benefits of loyalty in the banking industry are manifold.
Benefits of Investing in Banking Loyalty
1. Customer Retention
A loyalty program helps you reward your customers at every step that increases repeated purchases. According to a survey, loyalty programs increase overall revenue by 5 to 10 % and spend 15% more than non- members on an average.
However, to witness maximum customer retention rates, you must ensure:
· Customers can easily track their reward points on the dedicated platform
· Ensure points are accrued quickly in real-time
· Eliminate fine print conditions or exceptions that frustrate or confuse users
· Modern customers are tech-savvy, ensure you keep them connected via all devices and platforms
An effective loyalty program doesn’t just increase the utilization of rewards but also drive sales of additional services. More than half of all customers want their financial institutions to identify personalized discounts for them. Beyond reward points, your loyalty reward program can proactively share information about additional ways to save, making customers happy.
2. Garner Relevant Customer Data
Every time a shopper registers with a loyalty bank, the customer data gets recorded with the bank. Financial institutions can use the data for omnichannel, offline, and e-commerce segmentation. You can get a complete overview of customer behavior, how many transactions, mode of transactions, purchasing habits, and whatnot. Witnessing all these facts, your marketers can provide customized solutions for your customers, offering more rewarding banking experience. Besides tracking purchasing behavior, a customer loyalty solution can help banks to identify the most profitable customers, and in turn, recommend service rewards that are aligned with their interests.
3. Making Rewards Accessible to Everyone
Reward programs actively encourage more redemption across channels. Providing a well-defined platform helps your customers to stay connected with your bank, always. Banks that provide push notifications about their redeemable rewards witness higher success and engagement and success rates than those who offer delayed rewards information. You can also provide data like points expiry dates that will encourage them to redeem quickly. Either you invest in a ready-made loyalty solution or custom-built loyalty program, you can win the hearts of thousands of customers in a short interval of time.
The Path to Customer Loyalty in Banking Is Going Digital
Get it right, then you can turn your customers into brand evangelists and put your financial institution on par with the biggest renowned banking players. Today, it is all about how good you are delivering your digital experiences. The better the digital experience, the larger number of deposits and redemption can take place, ultimately leads to a more loyal customer base. Building end-to-end digital platforms help financial institutions to impress their customers and generate loyalty. From e-wallets to net banking, mobile banking, and UPI transactions, if you offer loyalty points across all the channels, then the chances of using your bank’s platform are comparatively more than any other banks.
Choose the right IT development company and get intuitive loyalty solutions for your bank that builds trust among the customers.
Summary
In today’s digital age, it has become a mandate to offer loyalty to customers across channels to enjoy deep, consistent, and meaningful engagement with your customers. Hire a reliable software development company that can build a robust and secure loyalty platform for your bank. Custom-built customer loyalty solutions can give you a competitive advantage and turn your customers into advocates for your bank.
There are many loyalty solution providers in the marketplace, all you need to do some research and get better clarity on what you need. Request quotes to get started with your loyalty project idea at the best prices.